Kaili Resources Hits 1,125ppm Rare Earths at Coodalya Sparking Further Drilling
Key Takeaways
- Hole 26CDAC023 returned the program's strongest result — 1m @ 1,125.51ppm TREO at 15–16m depth — from a 16-hole, 261-metre aircore campaign completed in July 2026 at the Coodalya tenement in South Australia's Murray Basin.
- Five samples across the program exceeded 300ppm TREO, the threshold considered encouraging at the ionic clay REE exploration stage, with four intercepts above that level spread across three separate holes.
- Mineralisation sits at shallow depths of just 18 metres in a highway-accessible location approximately 200km east of Adelaide, keeping exploration costs low and future bulk sampling practically achievable.
- Kaili's next steps include infill and extension drilling along road verges and more closely spaced drilling within adjacent freehold land parcels inside EL 6978, building on results west of the Alburdin locality.
- Regional validation comes from Australian Rare Earths' Koppamurra pre-feasibility study — released 25 June 2026 in the same Murray Basin — reporting a positive economic outcome on a 236Mt @ 748ppm TREO resource.
Coodalya drill results return best intercept of 1,125.51ppm TREO
Kaili Resources Limited has received laboratory assay results from its July 2026 aircore drilling campaign at the Coodalya tenement (EL 6978), part of the Mallee Project in South Australia’s Murray Basin. The headline result from hole 26CDAC023 — 1m @ 1,125.51ppm Total Rare Earth Oxide (TREO) at 15–16m depth — stands as the strongest single intercept returned from this program.
The July 2026 program was a targeted, focussed campaign with the following scope:
- 16 vertical aircore holes drilled
- 261 metres total metreage
- Depths up to 18 metres
- Drilled 22–23 July 2026
- Located in the NE corner of the Coodalya tenement, approximately 200km east of Adelaide, accessible by highway
This program builds on prior drilling reported in the company’s ASX announcements dated 20 October 2025 and 6 March 2026.
Beyond the headline intercept, the program returned several additional results of note. Hole 26CDAC023 also returned 1m @ 350.23ppm TREO at 16–17m, directly beneath the peak result. Hole 26CDAC025 returned 1m @ 428.84ppm TREO at 15–16m, and hole 26CDAC030 returned 1m @ 361.91ppm TREO at 6–7m. In total, five samples exceeded 300ppm TREO across the program.
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Understanding ionic clay REE deposits in the Murray Basin
Rare earth elements (REEs) are a group of metals critical to clean energy technologies, defence systems, and advanced electronics. In South Australia’s Murray Basin, REEs are found within the fine clay fraction of ancient Tertiary-aged sediments known as the Loxton/Parilla Sands — a geological formation deposited between approximately 65 and 2.5 million years ago. This style of mineralisation is described as ionic clay-hosted, meaning the rare earth ions are adsorbed onto clay minerals rather than locked into hard rock.
Total Rare Earth Oxide (TREO) is the standard metric used to express REE grades in this deposit type, measured in parts per million (ppm). As a rough guide, intercepts above 300ppm TREO are considered encouraging at the exploration stage, while results approaching or exceeding 1,000ppm attract closer attention from geologists and investors alike.
The Murray Basin is an increasingly recognised address for ionic clay REE exploration. Australian Rare Earths (AR3:ASX) released a pre-feasibility study for its Koppamurra REE project — located in the same basin — reporting a positive economic outcome on 25 June 2026, with a resource indicated on the company’s project map of 236Mt @ 748ppm TREO. That study provides regional validation that ionic clay deposits in this part of South Australia can carry economic potential.
The shallow depth of mineralisation — to just 18 metres — and the highway-accessible nature of the Coodalya tenement are operationally attractive features at this stage of exploration. Drilling costs are lower, logistics are simpler, and future bulk sampling or resource definition work remains practically achievable.
What the results mean and where Kaili goes next
Principal Geologist
“This small and focussed drilling program builds on previous drilling in 2025 and earlier in 2026 and allows the Company to consider more drilling programs within adjacent private land. We are encouraged that 5 samples were > 300ppm TREO to a maximum of 1,125.51ppm TREO which adds to an area of elevated TREO results located to the west of the locality of Alburdin.”
The results have defined an area of elevated TREO mineralisation west of Alburdin, and the company has indicated two planned next steps:
- Infill and extension drilling along road verges
- More closely spaced drilling within freehold (private) land parcels adjacent to road drilling sites within EL 6978
On methodology, all collected samples were first scanned with pXRF (a portable field-based instrument used for rapid elemental screening). From the full sample set, 28 selected samples were submitted to ALS Adelaide for full suite REE analysis using Method ME-MS81. OREAS standard 465 and blanks were inserted every 6th sample as part of QA/QC protocol — a standard quality assurance process designed to detect analytical bias and ensure result reliability.
The four headline intercepts from the program are summarised below:
| Hole ID | From (m) | To (m) | Interval | TREO (ppm) |
|---|---|---|---|---|
| 26CDAC023 | 15 | 16 | 1m | 1,125.51 |
| 26CDAC023 | 16 | 17 | 1m | 350.23 |
| 26CDAC025 | 15 | 16 | 1m | 428.84 |
| 26CDAC030 | 6 | 7 | 1m | 361.91 |
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Kaili’s broader Murray Basin footprint
The Coodalya tenement (EL 6978) is one part of a broader Murray Basin exploration position. Kaili’s tenement portfolio in the region also includes the Lameroo and Karte REE exploration tenements, as shown in Figure 1 of the announcement. All tenements are held by Kaili Gold, a subsidiary of Kaili Resources Limited.
Importantly, the JORC disclosure confirms no joint ventures, royalties, or native title claimants apply to these tenements.
The July 2026 program has extended an area of elevated TREO results west of Alburdin that the company considers a target for further systematic drilling. At depths of just 18 metres with highway access from Adelaide, the exploration cost profile at Coodalya remains manageable relative to harder-to-access deposit types. Further drilling — both infill along road verges and on adjacent freehold land — will be required before any resource definition can be considered.
The exploration results in this announcement were compiled by Competent Person Mr Mark Derriman, a consultant geologist and Member of The Australian Institute of Geoscientists (membership 1566). The announcement was authorised by Long Zhao, Executive Director.
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